Volkswagen emblem on the sting of the e-up. tire for electrical automobiles.
Julian Stratenschulte | Image Alliance | Getty Photos
German automaker Volkswagen reported a 42 p.c drop in third-quarter working revenue on Wednesday.
Working revenue fell to 2.86 billion euros ($3.1 billion), whereas third-quarter gross sales income shrank 0.5 p.c year-on-year to about 78.5 billion euros.
Automobile gross sales fell 8.3 p.c within the third quarter of 2024 in comparison with the identical interval a yr earlier, Volkswagen stated.
The Volkswagen Group’s web liquidity stood at minus 160.6 billion euros on the finish of September 2024, it stated. The corporate’s web liquidity amounted to minus 147.4 billion euros on the finish of 2023.
Volkswagen stated on Wednesday that its ends in the primary three quarters of the yr have been affected by larger mounted prices and restructuring efforts. Working revenue between January and September this yr was 21% decrease year-on-year.
Volkswagen shares have been final 1.8% larger at 8:19 a.m. London time.
Arno Antlitz, Volkswagen Group’s chief monetary officer and chief working officer, stated the efficiency mirrored a “difficult market setting” and highlighted the significance of ongoing effectivity applications throughout the corporate.
The third-quarter outcomes come after Volkswagen reported final month cut its annual outlook for 2024 for the second time in only a few months. On the time, the automaker stated it anticipated a revenue margin of about 5.6 p.c for the yr, together with a 0.7 p.c drop in gross sales to 320 billion euros. These figures have been unchanged on Wednesday.
Volkswagen has been in scorching water in current months, warning of potentially closing factories in Germany and eliminating numerous labor contracts with native employees in September. The corporate additionally stated it will finish its labor safety settlement, which has been in place for the German workforce since 1994.
on monday, This was announced by the Volkswagen works council the corporate’s administration plans widespread wage cuts and layoffs, in addition to closing or downsizing all of its vegetation in Germany.
In response, Volkswagen reiterated the necessity for restructuring and stated it will current plans to chop labor prices throughout a spherical of labor negotiations additionally going down on Wednesday.
“Forward of at present’s negotiations, we should state: the scenario is getting extra severe,” Volkswagen chief negotiator Arne Meiswinkel stated Wednesday, in line with a translation by CNBC.
He added that the present developments within the automotive business in Europe and particularly in Germany are worrying, as proven by the newest figures of each the corporate and its opponents.
Meiswinkel reiterated that Volkswagen wants to chop prices and enhance effectivity to be ready to spend money on its future.
